Federal budget 2026 spotlights tax and productivity

The federal budget, announced 12 May, yielded no major changes to superannuation rules, other than those already scheduled from 1 July which include Payday Super. 

The Albanese government labelled this their ‘most ambitious budget yet’- positioned for a more productive, more resilient economy; supported by businesses that can invest, adapt and grow.  

Budget coverage focused on measures to de-incentivise property investing, aimed at opening up the housing market to first-time buyers by slowing price growth and reducing tax inequality that currently sees landlords facing much lower tax bills than their tenants.  

Key taxation changes focused on taxing assets rather than income, targeting Capital Gains Tax, negative gearing and Trusts in a bid to dampen property values and tax investments more fairly. If personal investments lose their tax advantages, super could start to look more attractive, prompting some members to rethink their long-term strategy. 

Further reforms targeted homebuilding productivity by removing the cost of accessing mandatory Australian standards and investing in skills assessments so migrant tradies can convert to Australian qualifications more easily, easing workforce shortages.  

Overall, the housing crisis was a key discussion point. But there were measures to support businesses, too.  

For business, new provisions for instant asset write-offs and loss refunds should leave businesses able to reinvest faster, with less risk of layoffs during downturns, aiming to build a more resilient economy.  

These measures fed into the productivity focus designed to help businesses invest, grow and operate more efficiently. 

As well as making the instant asset write-off permanent (for assets under $20,000) and allowing eligible businesses to carry back losses to offset previous profits, there was new support for startups, including refunds linked to Fringe Benefits Tax, aiming to reduce friction and encourage investment.  

Loss carry-back provisions also provide a buffer. Businesses can recover tax paid in previous profitable years, which should help smooth out volatility and reduce financial pressure during downturns – which could be a lifeline for startups and smaller businesses.  

Alongside support for business, there’s more regulations, too. Penalties for anti-competitive behaviour are set to double from $50 million to $100 million. This signals a tougher stance on market conduct, with greater expectations around compliance and governance.  

For larger employers in particular, it’s important to review internal policies, ensure competition law compliance and maintain strong governance frameworks.  

As with most financial years, another minimum wage raise is in the works, too, with the new rate announcement due by June.  

With the tax bill rising on investment property and other assets and cuts to NDIS benefits, the government is implicitly relying on individuals funding more of their own retirement, letting super do the heavy lifting over the long term.  

Super remains a core pillar of the employment deal and a tax-efficient environment for wealth building, within the prescribed contribution and super balance caps. In particular, the First Home Super Saver (FHSS) Scheme offers first homebuyers a tax-efficient saving environment inside their super that supports the government’s drive to improve housing access.  

With ongoing volatility in energy markets feeding into rising inflation and interest rates, many Australians are continuing to feel the cost-of-living pinch. Productivity gains don’t necessarily translate directly into higher wages, but proactive engagement with super – including using its inbuilt benefits and lower taxation – can shore up wealth for the future.  

And with no new super changes on the horizon for now, at least you have one asset that’s built to last.  

Our coaching team is here to help all smartMonday members make the most of their super. 

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